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The BSE Sensex on Tuesday (January 21, 2025) plunged 1,235 points or 1.6% to 75,838, the level seen over seven months back on June 6, 2024, on account of uncertainties of Trump administration’s tariff plans.

The fall was led by Zomato (10.92%), Adani Ports (3.74%), NTPC (3.51%), ICICI Bank (2.98%), State Bank (2.57%), and Reliance (2.46%).

The BSE midcap index and small cap index were down 2% and 1.94% respectively.

Analysts said the sale-off was triggered by foreign institutions driven by the likely impact of President Donald Trump’s trade policies.

The NSE Nifty-50 index also fell 320 points or 1.37% to 23,025, its lowest point in the current downtrend.

Devarsh Vakil, Head, Prime Research, HDFC Securities said, “On his first day back in the White House, President Donald Trump warned BRIC nations that their plans for a BRIC currency would trigger a 100% tariff response. Markets experienced significant volatility on Sensex’s weekly expiry session, with Nifty closing down 1.37%.” 

Trading volume on the NSE cash market increased by 9% compared to the previous day.

“Market sentiment weakened further, reflected in the BSE’s advance-decline ratio of 0.43. All sectoral indices closed negative, with Nifty Realty, Consumer Durables, and PSU Banks recording the steepest losses,” he said.

“The Nifty failed to surpass its early morning high of 23,426, remaining under bearish pressure throughout the session. The index has now declined over 13% from its all-time high of 26,277, closing at its lowest point in the current downtrend,” he added.

Vikram Kasat, Head – Advisory, PL Capital – Prabhudas Lilladher, said, “Zomato was the biggest drag, contributing 170 points to the Sensex’s decline as its shares fell over 11% after reporting a 57% year-on-year drop in December quarter net profit.”

“Investor sentiment remained weak amid lacklustre Q3 earnings and sustained selling by foreign institutional investors (FIIs), who have sold equities worth ₹48,023 crore as of January 20, 2025. Global market mood was further hit by U.S. President Donald Trump’s announcement of trade tariffs on neighbouring countries, adding to concerns about policy uncertainty,” he added.